ZTE Inc. v. AGIS Software Development LLC

Background

ZTE filed an administrative motion seeking to seal portions of its motion to supplement the record and the supporting declaration of Bradford C. Schulz. ZTE also sought to seal Exhibits 1 and 2 to that declaration in their entirety. ZTE’s stated basis was that AGIS had designated the materials “RESTRICTED – ATTORNEYS’ EYES ONLY.” The parties also submitted a joint stipulation agreeing to seal the documents.

Legal Standard

The court explained that documents attached to dispositive motions generally require “compelling reasons” to overcome the public’s strong presumption of access to judicial records. Documents attached to non-dispositive motions—motions that do not resolve the underlying claims—are subject to the lower “good cause” standard under Federal Rule of Civil Procedure 26(c). That standard requires a particularized showing that disclosure would cause specific prejudice or harm. A broad or unsupported claim of harm is not enough.

Court’s Analysis

The court applied the good-cause standard because the documents related to a non-dispositive motion. It found that ZTE offered only a cursory explanation: the materials had been designated confidential by AGIS. AGIS did not file the declaration required by Civil Local Rule 79-5(e)(1) to establish within four days that the materials were sealable. The court also ruled that the parties’ joint stipulation did not establish the required specific prejudice or harm. A confidentiality designation alone was insufficient because it merely established coverage under the parties’ protective order.

Disposition

The court denied ZTE’s administrative motion to seal. Under Civil Local Rule 79-5(f)(2), ZTE could file unredacted versions of the motion, declaration, and exhibits, or file a new motion to seal, within seven days of the order. The opinion addressed only the sealing request.